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A down payment is cash in hand. It reduces the risk of bad debt to that extent. It also improves the cash flow to the extent of the down payment received.

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โˆ™ 2005-11-02 14:10:28
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Q: Why do finance companies ask for a down payment?
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Related questions

Where could one get car insurance with a low down payment?

Car insurance companies do not require full payment upon acceptance. They do however ask for a down payment. If you go through a 3rd party you maybe able to get car insurance without a down payment.

When is payment due after buying a car?

Generally a month. Sometimes if you ask your bank or finance company to defer the first payment for an additional month they will.

Which companies provide loan payment protection insurance?

There are many companies that provide loan payment protection insurance policies. Some examples are Farmers Insurance, Cherry Creek Loans, and Ask's website.

Where can one find information about auto transport companies?

Before you make a decision, always check reviews on Facebook, Google.. A genuine company doesn't ask for an upfront payment so do not trust companies who ask for upfront payment. They will ask for payment after schedule your object. For example RCC Auto has a very good repo and cheaper than other rccautotransport. com

Can you repay a gift that was given for down payment on a home?

Ask the person or company if that is an option.

When do the company issues the payment for workmans comp?

That will depend on the accounting practices of individual companies. You need to ask the company itself.

Do debt consolidation companies arrest you for non payment?

No. They will contact you and ask you why you DID NOT make a payment to them. If you are on a very tight budget and can't make that payment, it is understandable for one month. If the second month, that you don't make a payment to them, then your account will be inactive and you will end up paying the creditors yourself.

Do you need a down payment to refinance a car loan?

No. Banks may ask but most lenders do not require a downpayment.

How do you ask for upfront payment?

say can i have an upfront payment please

What sort of companies still ask for a fax cover letter?

There are many businesses that ask for fax cover letters and it is rather difficult to narrow down just a few. Mainly it is large companies that ask for fax cover letters to communicate effectively within their business.

If a bank has approved the loan do you have to pay a down payment?

that all depends on the loan, the terms of the loan. you need ask the bank not someone on here.

Who did Columbus ask first to finance his voyage?

bloop :)

How can a 19 year old with a steady job buy a car for 3500 dollars if nobody will give him a loan?

Tough question, but the best answer (probably) is that you'll have to save up the money to buy it. If no one will finance your venture, that's about all that's left that is legal and that won't put you in a vice. Certainly there is nothing stopping you from continuing to look for a company that will make the loan to you. Next time you ask for financing, if they say no, ask then who they know that might be willing to finance you. In fact, go back to the companies that turned you down and ask them again. And if they still say no, ask them for a recommendation. Keep after it. Be smart about this, and make the best choices. Good luck.

What happens to your credit report if you have a late payment and finance charge?

Maybe nothing. It depends upon whether the credit card company reported the delinquent activity to the credit bureaus. If it was a one-time issue (and otherwise you're always on time with your payments) you can contact the credit company to ask that they waive the late payment fee as a customer courtesy, just explain it was an oversight on your part and won't happen again. You can also ask if they reported the missed payment to the credit bureaus, or run your credit report to find out yourself.

What are the advantages of no money down bad credit mortgages?

One might ask, how can one get a no money down bad credit mortgage? If you have bad credit and do not have enough money to put a down payment of a mortgage, you can take advantage of an FHA loan.

Do you get a refund if you cancel your vacation rental reservation?

It depends on when you cancel. Some companies will give you full refund if you cancel way ahead of time some will give you back certain percent of your deposit/payment...Companies have different Terms and Conditions. Ask the company to be sure.

Can you ask a renter about rent payment on a Sunday?


How long did it take to build the International Finance Center?

Before you ask the questiion how long did it take to build, you must first ask yourself, "did they have enough financial support to build the International Finance Center?"

Who can you ask about past government companies?

how can you find past government companies

How do you terminate a car lease when the car is a lemon?

ask your finance company

Why do insurance companies ask personal questions?

Insurance companies ask "personal" questions simply because they need to know if your eligible for the insurance or not.

Does every car insurance company accept payment with credit card?

No, there are still some companies that do not accept credit cards. Personally I think they all should, call them and ask them to change their policy on this.

How can you get a military id for your parents?

Ask you command or finance. Usually they must be a dependent.

What is the finance charge for loans for computers for those with bad credit?

Most financial companies will not charge for loans for computers if you have bad credit. However, if you want to take a loan from a bank, they would ask you to apply for a traditional credit loan.

Why is amazon rain forest being cut down?

To get wood and there is lots of it there and companies don't want to cut trees in their country but go to a third world country but realy the question you need to ask is the head of the companies who cut them